M&A transactions are among the most prolonged in time in the deal-making sphere. They are usually connected with keeping and sharing of different secret corporate documents that are expected to be analyzed deeply before the transaction begins: investor, client, buyer or any other stakeholder is expected to have the exhaustive information on what is happening in the organization he has a chance to work with. That is why, the organization is expected to provide its stakeholders with all the necessary documents and with the room where they have an opportunity to analyze the data. In the epoch of universal digitalization, the most smart and logical solution for data keeping and investigation is a virtual data room – digital depository for files which is available all the time all over the Earth.
Virtual platforms are especially handy when it is time for due diligence. As due diligence has the reputation of pretty complicated and challenging process, everyone involved in the project are commonly looking forward to passing this milestone of the M&A as soon as possible. As for virtual-data-room.org data room solutions mechanism or formula to carry through a like-a-flash business checking with the most efficient consequence But, negligent attitude towards sensitive documents’ investigation might have unexpected and unpleasant results. That is why, a cautious buyer is more than engaged into proper due diligence course. Virtual platforms are equipped with many features that are aimed at facilitation of due diligence in particular and the deal-making in general. Some of the core features virtual data rooms offer to enhance due diligence are listed below.
Avant-garde protection system
During merger and acquisition transactions, various secret data have to be exchanged with the future buyers. Hence, everybody involved in the transaction are willing to keep the files in the most safe environment that may be thought out. Decent vendors offer their clients repositories that are equipped with a multi-sided protection system: the information is protected from misuse, leakage, destruction, etc. The complexity of safety is mostly provided by such options as dynamic watermarks, virus scanning, 256-bit data encryption, firewalls, regular backups, 2-step verification process, “fence view” option, etc. – all these options are aimed at guaranteeing safety to the undercover corporate files.
Within due diligence not everyone among the VDR users are expected to view all the files and documents: a repository have to allow the virtual repository administrator to sort VDR visitors into permission clusters. Such groups give an opportunity to determine the level of data disclosure and to have control over the access to the information. Hence, the data room owner is the one to supervise who can work with what and how long for via a virtual data room.
Advanced VDRs offer their owners an activity tracking instrument – the function that allows monitoring of every action of all the authorized users within the room. Well-structured audit reports contain the information on who entered the room, when, how long for, which documents were viewed, downloaded, altered, etc. Due to activity tracking feature the repository owners have an opportunity to identify the most energetic participants of the project and to ensure themselves that in a case of any possible troubles with the colleagues or future partners the audit report will be exploited as evidence.
Due diligence is a quite cumbersome and annoying process. That is why, the ease of exploitation belongs to the demanded features that are expected to be provided by a data room vendor: businessmen appreciate simple and comfortable virtual rooms that may be worked with without any special preparation. Advanced search system together with filtering instruments such a search by uploading date, file names, keywords etc. simplify the navigation in the platform. The integration with Microsoft office means that the VDR users may work with Word, Excel, and PowerPoint documents and do not need to adapt them. All these features help VDR visitors to focus on due diligence. In addition, development of the mobile application simplifies the information investigation considerably as all the documents are synchronized on all the gadget and the those taking part in the deal can work with the documents whenever and wherever it seems to be comfortable for them.